20120911 0941 Local & Global Economy Related News.

Malaysia is expected to sustain its trillion ringgit trade this year despite the uncertainties in Europe and the  sluggish United States' economy, according to Deputy Minister of International Trade and Industry Datuk Mukhriz Tun Dr Mahathir who added that the target would be driven by huge exports to China and fast-growing Middle East and India markets. (Bernama)

Affordable housing will drive  construction activities in the property sector while demand for high-end properties is expected to "taper off", says the Construction Industry Development Board Malaysia (CIDB), whose CEO added that there were expectations of more measures to deal with affordable housing by the government soon. (StarBiz)

The Industrial Production Index (IPI) increased by 1.4% yoy in Jul (3.7% in Jun), underpinned by  the stronger performance of the manufacturing sector, whose index rose 5.5% due to increases in petroleum, chemical, rubber and plastic products (9.9%); transport equipment and other manufactures (17.5%); and electrical and electronics products (1.9%). The electricity index rose 2.8% yoy whilst mining contracted 10.4% yoy. (StarBiz)

The federal government through the Economic Planning Unit under the Prime Minister's Department has channelled  RM1.38bn  this year for infrastructure projects to boost investment and economic activities in Kedah. Federal Development Department director for Kedah, Datuk Azmi Lateh said the federal government's commitment 'had so far managed to attract direct foreign investments worth RM1.1 billion, but the amount did not include the small projects approved from time to time, reaching almost RM60m. (Bernama)

US consumer credit outstanding fell US$3.3bn in Jul (a revised US$9.8bn in Jun) on the back of a US$4.8bn fall in revolving credit. Analysts were expecting a level of US$9.8bn. (Bloomberg)

The Eurozone Sentix investor sentiment index climbed to -23.2 in Sep, up from -30.3 in Aug, and well above the consensus forecast for a dip to -30.7. This is the first improvement since Mar thanks to the ECB’s plans to rescue the euro. (Reuters)

China, the world’s second-biggest oil consumer,  increased gasoline and diesel prices for the second time in about a month as rising crude costs threaten to curb profits at the nation’s largest oil refiners. The maximum at which gasoline can be sold to motorists rose by Rmb550 (US$87) a metric ton and diesel by  Rmb540, according to the  National Development and Reform Commission. (Bloomberg)

Overall  Chinese imports fell 2.6% yoy in Aug (4.7% in Jul) while  exports increased 2.7% yoy (1% in Jul), causing the  trade surplus to widen to US$26.66bn (US$25.25bn in Jul). (Bloomberg, FT)

In  China, passenger vehicle sales increased 11.2% yoy (8% in Jul) to 1,158,921 units in Aug. (China Daily)

China will earmark Rmb14bn (US$2.22bn) in  subsidies  to encourage the purchases of six types of energy-saving products, including desktop computers, air-conditioners, fans, water pumps, compressors and transformers. (Xinhua)

South Korea unveiled new stimulus measures worth US$5.2bn to boost domestic demand. The finance ministry said it would push for fiscal support worth 5.9tr won, 4.6tr won for the remainder of this year and 1.3tr won for next year. The new stimulus measures are expected to boost economic growth by 0.06% pts this year and 0.10% pts for next year. (CNA)

In  Japan,  nationwide compensation fell to ¥243.5tr (US$3.1tr) in 2Q12, only 0.7% above the level in the final quarter of 2009, which was the lowest since 1991. (Bloomberg)

Japan’s sentiment index for general households  rose in Aug to 40.5 from 39.7 in Jul, although the outlook remained uncertain due to worries about the economy. (Reuters)

Japan revised down its quarterly growth figures. On an annualised basis, the economy grew a revised 0.7%, lower than a preliminary 1.4% rise. The current account recorded a surplus of 625.4bn yen (US$8.0bn), down from a year ago but ahead of a market forecast of 438.2bn yen. (CNA)

Bond markets in emerging East Asia expanded by 8.6% yoy to US$5.9tr in Jan-Jun 2012 on double-digit growth in the region’s corporate bond markets, according to the Asian Development Bank. (Bernama)

Indonesia’s budget deficit as at 13 Aug, amounted to Rp35.2tr (US$3.66bn). Government spending reached 53.8% of the 2012 ceiling while  revenues reached 58.79% of the target. (Jakarta Globe)

Indonesia's domestic motorcycle sales fell 36.8% yoy in Aug (21.5% yoy in Jul) because of a higher downpayment requirement that came into effect on 15 Jun. (Reuters)

The Philippines’s move to enhance oversight of real-estate lending this year will help curb speculation and improve its ability to  prevent a property bubble from forming, the central bank said. The regulator ordered banks to provide more details on their real-estate exposure in Aug, including reporting investments in stocks and bonds that fund property ventures and loans to developers of low-cost homes. (Bloomberg)

International tourist arrivals to Thailand during the first eight months of this year increased by 8.66% yoy to 14.3m, and the Tourism Department expects the momentum to continue until year end. (Bangkok Post)

The  Bank of  Thailand  is  closely watching the next move by the US Federal Reserve, a ruling from Germany's Constitutional Court and implementation of a new bail-out fund in the euro zone, all of which will have impacts on the global economy. Thailand plans to introduce a bill letting it borrow THB2.2tr (US$70.8bn) for  infrastructure projects over the next seven years, finance minister Kittiratt Na Ranong said, adding that  the earlier plan was to borrow THB1.6-2.0tr, but the amount has been increased to include utilities and telecommunications projects. (Reuters)

Vietnam’s government acknowledged that  nonperforming loans—many made to inefficient state-owned companies—could be as high as 10% of the banking system. (WSJ)

Vietnam will spend VND12.77tr (over US$608m) between now and 2015 to improve the country's  healthcare system, according to a new National Target Health Programme approved by Prime Minister Nguyen Tan Dung recently. (Vietnam News)